The Board of Directors of Liberty All-Star Equity Fund authorized a tender offer on August 23, 2013. Under the offer, the fund will repurchase up to 14,057,996 Shares or 7.5% of its outstanding shares. The price to be paid for the shares is an amount per share, net to the seller in cash, equal to 96% of the Net Asset Value as determined by the Fund at the close of regular trading on the NYSE on September 23, 2013, or such later date to which the offer is extended.

The offer is intended to provide shareholders with an alternative source of liquidity for their investment in the Fund's shares, to enhance long-term shareholder value and, potentially, to reduce the discount to NAV at which the Fund's shares trade. The Fund's offer will expire on September 23, 2013, unless the offer is extended.